Modon & ADIB 75% Off-Plan Financing Explained

Written by the Bramwell & Partners advisory team, Abu Dhabi real estate advisors. Last reviewed: October 2026.

On 7 July 2026, Modon Holding and Abu Dhabi Islamic Bank announced what both describe as a first for the capital: bank financing of up to 75% of an off-plan property's value, provided during construction, on selected future Modon launches. If you have ever bought off-plan in the UAE, you will immediately understand why this matters. Until now, off-plan buyers have funded construction instalments largely from savings, with mortgages only kicking in around handover. This scheme moves the bank's money into the build phase.

Here is what was announced, how the numbers actually behave, who stands to benefit, and, just as important, the questions that remain unanswered.

Key takeaways

• Eligible buyers of future Modon developments can apply for ADIB finance covering up to 75% of the property value while the home is being built.
• The buyer's own cash drops to 15% during construction plus 5–10% at handover, versus 50% or more before completion under typical developer plans.
• The facility applies to future Modon launches only; existing purchases (including Bashayer) keep their current payment plans.
• 75% is a ceiling, not an entitlement, ADIB assesses each applicant, and approval is not guaranteed.
• Strategically, this widens Abu Dhabi's buyer pool and could pull demand forward into Modon's pipeline; buyers should still stress-test the handover balance.

The announcement at a glance

Item	Detail
Announced	7 July 2026
Parties	Modon Holding (developer) + Abu Dhabi Islamic Bank (financier)
Maximum finance	Up to 75% of property value
Buyer cash during construction	15%
Buyer cash at handover	5–10%
Eligible stock	Future Modon developments launched with the facility
Approval	Subject to ADIB's customer eligibility assessment
Availability	As qualifying future launches come to market

How it works, step by step

1. Choose a home in an eligible future Modon launch. The facility is attached to specific forthcoming developments, not to Modon's existing sold stock.
2. Apply to ADIB alongside reservation. The bank assesses you and approves a finance amount up to the 75% ceiling.
3. Pay 15% during construction per the project's payment schedule.
4. ADIB funds its approved share through the build, meeting construction-stage payments due to Modon on your behalf.
5. Pay the final 5–10% at handover, with the bank funding carried through to completion.

The structural novelty is step 4. Under a conventional 50/50 plan, the buyer personally funds half the price before receiving keys. Under this scheme, an approved buyer personally funds as little as 20–25% of the price in total before and at completion, with the bank carrying the rest from early in the build.

The cash-flow difference, in dirhams

On a AED 2m apartment, here is how the announced structure compares with Modon's common 50/50 plan:

Cash item	Standard 50/50 plan	Modon–ADIB structure (max finance)
Buyer cash during construction	AED 1,000,000 (50%)	AED 300,000 (15%)
Buyer cash at handover	AED 1,000,000 (50%)	AED 100,000–200,000 (5–10%)
Bank funding	Typically arranged only at completion	Up to AED 1,500,000, drawn during construction
Total buyer cash before keys	AED 1,000,000	AED 300,000

That is a 70% reduction in the personal capital tied up during the build, the difference between needing AED 1m liquid and needing AED 300,000. For an end-user, it converts an off-plan purchase from a savings-intensive commitment into something resembling a conventional financed purchase. For an investor, it frees capital for a second unit, furnishings or other assets.

What this means for buyers and investors

End-users gain the most. The classic off-plan problem, paying rent elsewhere while funding construction instalments from salary, is substantially eased. A family that could service a mortgage but could never accumulate AED 1m mid-build can now buy earlier in the cycle, at launch pricing.

When clients ask us whether the scheme changes what they can afford, we walk through a representative case, anonymised and illustrative. A salaried Abu Dhabi couple with a combined income of around AED 55,000 a month can comfortably service a AED 2m mortgage, but under a 50/50 plan they would need AED 1m in cash during construction, money most households do not hold liquid. Under the announced ADIB structure, their pre-handover cash requirement falls to roughly AED 300,000–400,000, achievable from savings and bonuses over the build. That is the real significance of the announcement: not leverage for its own sake, but access for creditworthy buyers who were previously cash-constrained. For the project context, see our Bashayer by Modon review, an existing launch that remains on its standard payment plan.

Overseas buyers should note the timing advantage. The finance decision happens at launch, not at handover. That removes the biggest uncertainty in a four-year off-plan purchase: whether bank funding will be available, and on what terms, when the building completes. Buyers remitting from India, the UK or the US can also plan currency transfers around a smaller, earlier set of payments.

Investors gain leverage, with the usual warning. Financing 75% of a rising asset amplifies returns; it amplifies losses the same way if values soften. And the obligation to the bank exists regardless of what the resale market does before handover.

The market-level effect is real. Abu Dhabi's off-plan demand has been constrained by the cash-intensity of construction instalments. If construction-stage finance becomes normal, and other developer-bank pairings follow, the qualified buyer pool for the capital's island launches widens materially. That supports launch pricing and, over time, could compress the discount off-plan traditionally carries against completed stock.

How this could reshape Abu Dhabi's launch market

Zoom out and the partnership looks like the first move in a structural shift. Dubai's off-plan boom was built on developer instalment plans; Abu Dhabi is now adding bank capital to that model, which matters in three ways.

First, demand timing. Buyers who would previously have waited for a completed or nearly completed unit, because that is when mortgage finance became available, can now enter at launch, when prices are lowest and choice is widest. Expect qualifying future Modon launches to absorb faster than their predecessors.

Second, competitive pressure. Aldar, and the other major Abu Dhabi and Dubai developers, now face a rival whose buyers need 70% less cash during construction. If the scheme performs, imitation is likely, and construction-stage finance could become a standard feature of UAE off-plan within a few launch cycles, much as post-handover payment plans did a decade ago.

Third, the mortgage itself becomes a launch feature. Buyers will compare not just payment plans but financing partners, approval criteria and profit-rate structures between projects. That adds a layer of diligence, and a layer of consumer protection, because a bank underwriting construction-stage exposure has its own incentives to verify the developer and the project.

None of this removes the fundamentals. Escrow protection, ADREC registration and the SPA still govern the purchase, and the bank facility sits on top of, not instead of, those safeguards.

The caveats competitors gloss over

• "Up to 75%" is a ceiling. ADIB will approve what its criteria support for you; treat anything above 60–65% as a bonus until your approval letter says otherwise.
• It is future launches only. Existing Modon purchases, including Bashayer's final buildings, remain on their signed payment plans. Do not assume the facility will be retrofitted.
• The valuation risk moves, but does not vanish. If the bank's valuation at any stage comes in below the purchase price, the gap is yours to fund in cash.
• Terms were not fully published at announcement. Profit rate structure, fees, early-settlement terms and what happens if a project is delayed all sit in documentation buyers should read line by line. As this is an Islamic bank facility, buyers should also review how the Sharia-compliant structure (typically a forward ijara or similar arrangement) maps onto a construction-period disbursement.
• Eligibility runs both ways. The project must carry the facility and you must qualify for it. Confirm both before paying a reservation amount.

Expert view from Bramwell & Partners

"This is the most consequential financing development in Abu Dhabi property in years, not because of the headline 75%, but because the bank enters at launch. Our advice to clients is unchanged in principle: borrow what your income safely services, not what the ceiling allows. But for first-time buyers and overseas investors who were previously excluded by the cash demands of construction plans, this genuinely opens the door to communities like Hudayriyat that were out of reach six months ago."

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Frequently asked questions

What exactly did Modon and ADIB announce?

An off-plan home-finance partnership, announced 7 July 2026, under which eligible buyers of future Modon developments can obtain ADIB financing of up to 75% of the property value during construction, paying 15% themselves during the build and 5–10% at handover.

Does ADIB pay Modon during construction on my behalf?

Yes, the approved bank-funded share covers construction-stage payments due under the purchase plan. You pay your 15% contribution from personal funds per the project schedule.

Is every buyer guaranteed 75% financing?

No. 75% is the maximum. ADIB assesses each applicant's eligibility and sets the approved amount, which may be lower.

Does the scheme apply to current Modon projects like Bashayer?

No. The announcement covers future Modon developments launched with the facility. Existing purchases continue under their signed payment plans.

When can I use it?

When the first eligible future Modon launch comes to market with the ADIB option attached. Modon is accepting registrations of interest for forthcoming developments.

Is this a mortgage or an Islamic finance product?

ADIB is a Sharia-compliant bank, so the facility will be structured under Islamic finance principles (commonly a forward lease or ijara-style arrangement) rather than a conventional interest-bearing mortgage. The practical cash-flow effect for the buyer is similar; the legal documentation differs. Review the structure with the bank and your advisor before signing.

How does this compare with a normal UAE mortgage?

A conventional mortgage on a completed property typically funds up to 75–80% for residents (less for non-residents) at or near handover. The innovation here is timing: the funding is approved and drawn during the off-plan build phase rather than at completion.

What are the risks of financing an off-plan home during construction?

You carry a financing obligation before the asset exists in usable form. Key risks: construction delay, bank valuation below purchase price, profit-rate terms changing with market conditions, and your own circumstances shifting over a multi-year build. Read the facility documentation and the SPA together before committing.

The bottom line

Modon and ADIB have rebuilt the off-plan cash-flow equation for the capital. Less personal cash during construction, bank certainty at launch instead of hope at handover, and a wider pool of buyers for Abu Dhabi's next generation of island communities. Used prudently, it is a genuine improvement in how the market works.

How we verify this analysis

This piece is based on the joint Modon Holding–ADIB announcement of 7 July 2026 and both institutions' public statements; the percentages quoted are as announced and remain subject to ADIB's per-customer approval and final documentation. All worked figures are illustrative calculations, not quotes, verify every term against your finance offer and the SPA before committing.

Disclosure: Bramwell & Partners may act for buyers in some projects mentioned; our analysis is independent of developers and lenders, and we do not accept payment for coverage.

Considering a future Modon launch under this facility? Bramwell & Partners will model your total cash commitment, compare the financing against standard payment plans, and coordinate the ADIB pre-assessment alongside your unit selection. Browse our off-plan projects and completed properties, or speak to our Abu Dhabi advisory team.

Sources: Modon Holding and ADIB official announcements (7 July 2026); UAE Central Bank mortgage regulations. Facility terms are subject to ADIB approval and documentation; this article is information, not financial advice.